UK/US - Biotechnology firm Sygen is abandoning its legal action against Watson Wyatt over "inappropriate" advice on setting up the firm's pension scheme.
The US-based firm’s decision will come as great relief to the consultant which could have triggered similar claims in the UK.
Sygen set up its scheme after the firm split from previous owner Dalgety – a pet food company – in 1998.
The firm reached an agreement with trustees that, under the advice of Watson Wyatt, any surplus should be used to boost members’ benefits.
But since the scheme was set up, the surplus – which stood at £3.3m in March 2000 – dropped to just £1.1m under FRS17 by the end of 2002.
A spokesman for Sygen said: “At the time of the demerger of Dalgety, Watson Wyatt gave advice on the pension fund in the UK.
“All we can say is there has been an exchange of letters between the company and Watson Wyatt.”
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